ArcBest Corp (ARCB)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,422,890	5,336,500	3,996,140	2,942,940	2,993,880
Property, plant and equipment	US$ in thousands	914,824	800,170	695,921	678,690	683,592
Fixed asset turnover		4.83	6.67	5.74	4.34	4.38

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,422,890K ÷ $914,824K
= 4.83

Fixed asset turnover is a financial ratio that indicates how effectively a company generates revenue from its investment in fixed assets. The ratio is calculated by dividing net sales by average fixed assets.

Looking at the trend of fixed asset turnover for ArcBest Corp from 2019 to 2023, we observe fluctuations in the ratio. In 2019, the fixed asset turnover was 4.37, and it increased to 4.33 in 2020. This decrease could indicate that the company's ability to generate revenue from its fixed assets dipped slightly in 2020. However, the ratio rebounded in 2021 to 5.72, showing a significant improvement in efficiency in utilizing fixed assets to generate sales.

The trend continued positively in 2022, with the fixed asset turnover reaching 6.57, indicating further enhancement in efficiency. However, in 2023, the ratio decreased to 4.84, suggesting a slight decline in the company's ability to convert its fixed assets into revenue compared to the previous year.

Overall, it is essential for ArcBest Corp to closely monitor its fixed asset turnover ratio to ensure optimal utilization of fixed assets and continuously seek ways to improve efficiency in generating sales from these investments.